Trading Statement

Weir Group PLC 18 January 2007 18 January 2007 THE WEIR GROUP PLC TRADING UPDATE The Weir Group PLC issues a trading update in advance of its preliminary announcement for the 12 months ended 29 December 2006 due to be published on 21 March 2007. In the second half, the Group continued to benefit from generally strong market conditions, the restructuring undertaken in 2005 and the impact of recent acquisitions. We expect profit before tax and exceptional items for the full year to be substantially ahead of 2005 and at the upper end of current Reuters market estimates. Revenue growth in the second half is expected to be around 15% resulting in growth for the year of around 19%. As a result of an ongoing focus on working capital management, cash generation has been strong which should result in a further reduction in net debt compared to that reported at the time of the interims. In addition, net exceptional gains of around £15.5m are expected to be recognised for the year following the completion of the sale of the Huddersfield site of Weir Valves & Controls UK and agreed changes to the Group's UK pension arrangements which will reduce the pension fund deficit. Divisional Trading Comment Engineering Products In the second half, our Engineering Products Division continued to achieve good levels of growth in order input, sales and profits leading to further improvement in underlying operating margins when compared to 2005. The division benefited from restructuring undertaken in 2005 and the full year effect of the acquisition of Gabbioneta. Engineering Services As anticipated, revenues in the second half are expected to be marginally down when compared to 2005. While underlying profitability and operating margins improved, reported operating results are expected to be down on 2005 due to additional once off restructuring costs in the Middle East, USA and UK. Defence, Nuclear & Gas The Defence, Nuclear and Gas Division continued to make progress with second half revenues and operating profits ahead of last year. Outlook for 2007 The continuing level of input growth in 2006 and strength of the year-end order book are expected to translate to further progress across all divisions in 2007. Footnote: The pre-tax profit (before exceptionals) range of analysts' forecasts on Reuters Knowledge Consensus at 9 January 2007 was £74.60 m to £86.70 m with consensus at £82.70m. Contact details: The Weir Group PLC Mark Selway, Chief Executive Tel. 0141 637 7111 (switchboard); Helen Walker, Public Relations Manager Tel. 0141 308 3739 (Mobile: 07789 032296) Maitland Tel. 020 7379 5151 Suzanne Bartch Peter Ogden Note to Editors: Print quality images are available to download at http://www.newscast. This information is provided by RNS The company news service from the London Stock Exchange

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Weir Group (WEIR)
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